Correlation Between Integer Holdings and Rapid Micro
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Rapid Micro at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Integer Holdings and Rapid Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integer Holdings Corp and Rapid Micro Biosystems, you can compare the effects of market volatilities on Integer Holdings and Rapid Micro and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Integer Holdings with a short position of Rapid Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Rapid Micro.
Diversification Opportunities for Integer Holdings and Rapid Micro
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integer and Rapid is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Rapid Micro Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Micro Biosystems and Integer Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Integer Holdings Corp are associated (or correlated) with Rapid Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Micro Biosystems has no effect on the direction of Integer Holdings i.e., Integer Holdings and Rapid Micro go up and down completely randomly.
Pair Corralation between Integer Holdings and Rapid Micro
Given the investment horizon of 90 days Integer Holdings is expected to generate 2.01 times less return on investment than Rapid Micro. But when comparing it to its historical volatility, Integer Holdings Corp is 2.21 times less risky than Rapid Micro. It trades about 0.16 of its potential returns per unit of risk. Rapid Micro Biosystems is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Rapid Micro Biosystems on August 28, 2024 and sell it today you would earn a total of 20.00 from holding Rapid Micro Biosystems or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Rapid Micro Biosystems
Performance |
| Timeline |
| Integer Holdings Corp |
| Rapid Micro Biosystems |
Integer Holdings and Rapid Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Rapid Micro
The main advantage of trading using opposite Integer Holdings and Rapid Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Rapid Micro can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rapid Micro will offset losses from the drop in Rapid Micro's long position.| Integer Holdings vs. Heartbeam | Integer Holdings vs. EUDA Health Holdings | Integer Holdings vs. Nutex Health | Integer Holdings vs. Healthcare Triangle |
| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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